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Committed to the decarbonisation of the global economy

Fulfilling the environmental commitments assumed in the Paris Agreement (COP21) requires profound changes in production processes and consumption patterns throughout all sectors of the economy. LEARN MORE

IGNACIO GALÁN IN THE DAVOS WORLD ECONOMIC FORUM

Committed to the decarbonisation of the global economy

Fulfilling the environmental commitments assumed in the Paris Agreement (COP21) requires profound changes in production processes and consumption patterns throughout all sectors of the economy.

Ignacio Galán, delivering his speech in the panel 'Strategic Outlook: Energy Systems', addressing the utilities of the future and the opportunities it offers to the fight against climate change.

Ignacio Galán, delivering his speech in the panel 'Strategic Outlook: Energy Systems', addressing the future of oil and gas.

Ignacio Galán, delivering his speech in the panel 'Strategic Outlook: Energy Systems', addressing the commitments required to meet the objectives of the Paris Agreement.

During his participation in the Davos World Economic Forum, Iberdrola Chairman Ignacio Galán supported the need to promote decarbonisation and electrification of the economy, which will require more renewable energies, more storage capacity, more intelligent networks and more electric vehicles, as well as a 19 billion dollar investment by the electric sector over the next 25 years.

For Ignacio Galán, the energy transition and the fight against climate change represent "an opportunity" that all industry players must be part of: "In addition to governments and the private sector, we must also get the support of the NGOs, cities and consumers" in order to generate alliances, as set out in Sustainable Development Goal number 17 of the United Nations Organisation.

Galán has also insisted that this process is compatible with achieving profitability, as demonstrated by Iberdrola's evolution: After investing 100 billion dollars in renewable energies, networks and hydroelectric pump technology, it has multiplied its asset base fivefold and tripled its profits and dividends. "We have gone from being in 20th place in terms of market capitalisation in utilities to being in the top four in the world", he added.

Ignacio Galán and His Majesty the King, Felipe VI, during the Davos World Economic Forum.

To move towards a decarbonised economic model it is also necessary to implement stable and predictable legal frameworks, which must be accompanied by a reform of environmental taxation under the 'polluter pays' principle, as well as the elimination of non-energy costs included in the electricity tariff. In this sense, Galán has made clear that all countries signed up to the Paris Agreement are developing different policies to fulfil the commitments assumed when entering into the XXI United Nations Framework Convention on Climate Change 2015 (COP21): the European Union, for example, is processing the Clean Energy for All Europeans package.

Since 2001, the company has closed several thermal power stations, totalling close to 7,500 MW of installed capacity, and built 34,000 MW worth of renewable and more environmentally friendly power plants.